S&P 500 Price Forecast – S&P 500 drops to end the week

The S&P 500 dropped during the trading session on Friday, as we are starting to get a bit overstretched. It makes sense that the market needs to take a breather after the recent run higher, and quite frankly it’s probably a good thing for the overall uptrend. We need to see new buyers come into the market, but it is a bit stretched to expect them to show up suddenly. Over 90% of earnings this last season have been pretty good so I think there is reason to go higher, but obviously there are a lot of geopolitical concerns out there.

Ironically though, those geopolitical problems may be driving money into the US stock markets as it is the one economy in the world it seems to be growing at a decent rate. In the past, money would typically leave all stock markets, the US would not have been any different but that doesn’t seem to be the case this time around. Looking at this chart, I believe that the major support level at the 2800 level will continue to keep the market afloat, but we may need a couple days of negativity to offer enough value for traders to get involved. Until then, expect very choppy and difficult conditions in a market that continues to show a lot of skittish behavior although in and uptrend.

S&P 500 Video 13.08.18